Earn a 10.6% Yield From Other People’s Mortgage Payments

Long-term readers of this column would know that here at Income Investors, we are big fans of real estate investment trusts (REITs). These entities are essentially giant landlords. By collecting rent payments from tenants, they can pay regular dividends to investors. However, owning physical properties is not the only thing a REIT can do. They can also invest in mortgages. By collecting mortgage payments from property owners, mortgage REITs (commonly referred to as mREITs) can also dish out reliable dividends to shareholders.

AG Mortgage Investment Trust Inc (NYSE:MITT) is a good example of this. Headquartered in New York City, AG Mortgage Investment Trust invests in a diversified portfolio of residential and commercial mortgage assets, as well as other real estate-related securities and financial assets. As of June 30, 2018, the company’s total investment portfolio had a fair value of approximately $3.6 billion. Right now, the No. 1 reason to consider this mREIT is its generous dividend policy. Earlier this year, the Board of Directors of AG Mortgage Investment Trust raised its quarterly dividend rate from $0.48 per share to $0.50 per share. With MITT stock trading at $18.90 apiece, the company offers investors an annual dividend yield of 10.6%.

Source: Income Investors

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